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NEW  YORK  AND  ERIE  RAILROAD  COMPANY. 


REPORT 

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INVESTIGATING  COMMITTEE. 


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NEW  YOKE: 

PRINTED  BY  ORDER  OF  THE  BOARD  OF  DIRECTORS. 


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NEW  YORK  AND  ERIE  RAILROAD  COMPANY. 


REPORT 


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INYESTIGATING  COMMITTEE. 


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NEW  YOKE: 

PRINTED  BY  ORDER  OF  THE  BOARD  OF  DIRECTORS. 


18  54. 


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2,?-5'4 


REPORT. 


TO  THE  BOARD  OI^  DIRECTORS  OF  THE  NEW 
YORK  AND  ERIPI  RAILROAD  CO. 

The  Committee  organized  on  the  14th  nit.,  at  the  re- 
quest of  your  Body  to  examine  into  all  the  Books,  Papers, 
Accounts,  and  Transactions  of  the  Company,''  submit  the 
following  Eeport : 

, SUBJECTS  EXAMINED.  • 

Under  the  authority  derived  from  the  Board,  we  have 
inquired  into 

1.  The  system  of  Checks  and  Accounts  : 

2.  The  Printed  Keports  of  the  Company  to  ascertain 
whether  they  correspond  with  the  Books  : 

3.  The  state  of  the  Stock  Account : 

4.  The  amount  of  the  Stock,  and  other  Indebtedness  of 
^ the  Company  : 

4^  5.  The  principles  governing  the  classification  of  Construc- 

^ tion  and  Transportation  Accounts  : 

6.  The  Construction  Account  : 

7.  The  additions  to  the  Bed,  Track,  Cuttings,  Embank- 
ments, Boiling  Stock,  &c. : 

8.  The  Property  of  the  Company  : 

9.  The  ordinary  sources  of  Income  : 

K).  The  ordinary  charges  upon  Income  : 

11.  The  gross  and  net  Earnings  as  exhibited  by  the  Books : 

12.  The  prospective  Revenue. 

We  have  also  inquired  into  such  acts  of  your  Board  as  have 
come  before  us  incidentally  in  investigating  the  above 
subjects. 


i' 


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4 


THE  PERIOD  INQUIRED  INTO 

Is  that  between  September  30,  1852,  and  September  30, 
1854.  The  complete  returns  terminate  with  June  30, 1854, 
but  with  the  help  of  partial  returns  and  estimates,  we  are 
able  to  come  with  proximate  accuracy  to  September  30, 1854. 
The  Kesolution  of  your  Board  invited  inquiry  ^^for  such 
period  as  we  might  see  fit,''  and  authorized  us  “ to  question 
the  officers  of  the  Company  concerning  the  same."  On  con- 
sulting with  each  other,  we  thought  that  the  puqDOses  to 
wliich  we  were  called  would  he  answered  by  going  hack  to 
September  30,  1852,  at  which  time  the  Koad  had  been  in 
operation  nearly  a year  and  a half,  and  two  dividends  had 
been  declared. 

Mr.  George  Holbrook,  of  Boston,  an  experienced  Ac- 
countant, well  versed  in  railroads,  and  recently  favorably 
known  in  this  community,  has  been  employed  to  aid  us  in 
the  general  examination.  We  have  found  the  officers  of  the 
Company  ready  to  render  every  assistance  in  their  power, 
and  to  answer  all  questions.  We  therefore  feel  justified  in 
assuming  that  the  examination  is  thorough  for  the  time 
which  it  covers,  and  the  subjects  to  which  it  relates. 


report  of  SEPTEMBER  30,  1852. 

We  assume  the  condensed  Balance  Sheet  of  1852,  hereto 
annexed  (A.)  to  he  a correct  exhibit  of  the  affairs  of  the 
Company  on  that  day.  The  balances  have  been  compared 
by  Mr.  Holbrook  and  found  right,  certain  corrections  being 
made  in  the  Construction  and  Transportation  Accounts, 
which  will  appear  by  reference  to  the  note  to  Schedule  (A.) 

You  will  observe  that  certain  discrepancies  exist  between 
that  statement  and  the  published  Keport  of  the  standing  of 
the  Company  at  the  same  time  made  by  the  Treasurer  in 
pursuance  of  law.  These  discrepancies  are  principally  as 
follows  : 

First.  The  Floating  Debt  is  represented  in  the  publish- 
ed Report  at  $1,323,053  55  : Whereas,  including  unpaid 


5 


interest  and  Dividends,  Paymasters,  &c.  accounts,  and 
other  accounts  payable,  it  then  amounted  in  gross  to 
(C.)  ------  12,771,550  29 

Deduct  accounts  and  bills  receivable  (C.)  387,143  46 


Balance  Floating  Debt,  (H.)  - $2,384,406  83 


Second.  The  Passenger,  Freight,  and  other  Earnings, 
are  represented  in  the  Eeport  as  follows  : 

Passenger  Earnings,  - - - $1,382,636  87 

Freight  - 1,883,198  76 

From  other  sources,  - - - 271,930  90 


Total,  - - $3,537,766  53 


The  actual  Earnings  for  the  same 
Passengers,  _ - _ 

Freight,  - - _ - 

Other  sources,  _ - _ 


Total 


time  were, 

- $1,286,732  38 

1,761,016  01 
272,157  75 

- $3,319,906  14 


The  first  discrepancy  was  caused  by  regarding  Bills  Pay- 
able as  alone  constituting  a Floating  Debt,  and  by  deducting 
from  them  the  value  of  the  Buffalo  and  State  Line  Kailroad 
stock,  and  of  the  Fuel  on  hand.  Cash,  acceptances  for  Iron 
not  received,  and  Bills  Eeceivable.  The  Balance  is  assum- 
ed to  represent  the  Floating  Debt. 

The  second  discrepancy  is  caused  by  reporting  only  the 
credits  of  Passenger  and  Freight  Earnings,  without  deduct- 
ing debit  amounts  to  be  refunded  to  independent  connecting 
roads.  The  item  Other  Sources,’’  in  the  Eeport,  is  made 
up  by  adding  the  Hudson  Eiver  F erry  Earning  to  the  Ledger 
Balance,  which  appears  to  be  correct,  since  the  Ferry  Ex- 
penses are  reported. 

We  leave  your  Body  to  determine  the  reasons  for  these 
erroneous  statements,  and  to  whom  they  are  to  be  charged. 
We  can  see  no  justification  for  them.  It  appears  in  evi- 
dence before  us,  that  the  knowledge  of  them  came  to  the  then 


6 


Board  of  Directors  in  a short  time  after  the  Report  had 
been  sent  to  Albany  by  the  Treasurer,  and  that  the  sub- 
ject was  investigated  by  their  orders.  We  think  they 
erred  in  not  frankly  exposing  them.  Since  September, 
1852,  your  Board  has  had  to  contend  against  the  effects 
of  a dividend  declared  when  not  fully  earned,  and  the  re- 
presentation of  your  Floating  Debt  at  far  below  its  actual 
amount. 

A development  like  this,  in  the  outset,  led  us  to  regard 
aU  after  transactions  with  suspicion,  and  to  scrutinize  them 
rigidly.  The  results  have  been  highly  favorable  to  the 
Company. 


SYSTEM  OF  ACCOUNTS. 

The  mode  of  keeping  the  books,  and  the  system  of  checks, 
lirst  attracted  our  attention.  This  is  best  described  in  the 
testimony  of  Me.  Beemner,  the  General  Book-keeper. 

1 . state  the  system  of  Accounts  as  to  Receipts. 

The  rule  is  that  the  Agents  must  remit  to  the  Treasurer  daily,  all  moneys 
received  on  account  of  the  Company. 

Upon  the  receipt  of  the  remittances  by  the  Treasurer  they  are  all  counted 
and  examined,  and  placed  to  the  credit  of  “ Transportation  Receipts”  on 
the  Cash  Book,  and  upon  a side  hook  are  placed  to  the  credit  of  the  Agents 
personally;  the  total  of  the  personal  credits  to  the  Agents  agreeing,  daily, 
Avith  the  amount  placed  to  the  credit  of  “ Transportation  Receipts”  on  the 
Cash  Book. 

At  the  end  of  the  month  Cash  is  charged  on  the  General  Ledger  Avith  the 
total  of  the  receipts  during  the  month,  and  Transportation  Receipts ” is 
credited  Avith  the  same  amount,  thus  leaving  to  the  credit  of  “ Transporta- 
tion Receipts”  the  amount  received  by  the  Treasurer  during  the  month. 
The  Treasurer  then  makes  a report  to  the  General  Book-keeper  of  the 
amounts  received  from  each  Agent,  the  total  of  Avhich  should  agree  Avith 
the  amount  credited  to  “ Transportation  Receipts.”  The  General  Book- 
keeper makes  an  entry  crediting  the  Agents,  personally,  Avith  the  amounts 
received  from  each,  and  charges  “ Transportation  Receipts  ” Avith  the  total 
amount ; or,  Avhich  is  the  same  thing,  charging  “ Transportation  Receipts  ” 
Avith  the  same  amount  that  the  Treasurer  had  credited  it  Avith,  thus  closing, 
monthly,  ‘‘  Transportion  Receipts  ” account. 

“ Transportation  Receipts  ” account  is  merely  a memorandum  account 
through  Avhich  the  Agents  get  credit  for  the  amounts  remitted  by  them,  or, 
in  other  Avords,  instead  of  crediting  each  Agent  daily  on  the  Cash  Book  Avith 
the  amounts  remitted  by  them,  it  is  first  carried  into  Transportation  Re- 


7 


ceipts  ” and  at  the  end  of  each  inontli  “ Transpoi-tation  Receipts  ” is  charged 
with  the  amounts  received  from  each  Agent,  and  the  Agent  gets  his  appro- 
priate credit  through  a Journal  entry,  instead  of  through  the  Cash  Book. 

2.  As  to  Expenditures  for  Coastriiction. 

Expenditures  for  Construction,  excei)t  contract  work,  are  made  under 
the  direction  of  tlie  General  Superintendent,  and  under  the  immediate  su- 
pervision of  the  Superintendents  of  Division,  who  certify  to  the  vouchers  for 
the  expenditures.  Contracts  are  made  by  a Committee  of  the  Board  of 
Directors,  called  the  “ Committee  on  Contracts the  vouchers  for  payments 
under  such  contracts  are  approved  by  the  Cliairman  of  the  Committee. 

8.  As  to  the  Expenditures  for  Transpoi-totion. 

All  expenses  for  “ Office  and  Station  Expenses,”  Cost  of  Running,”  “ Re- 
pairs of  Machinery,”  “Repairs  of  Track  and  Road^vay,”  “ Repairs  of  Build- 
ings, &c.,”  “Cost  of  Operating  Telegraph,”  and  the  “Expenses  of  Hudson 
River  Ferry,”  between  New  York  and  Piermont,  are  charged  to  “ Transpor- 
tation Expenses.”  The  interest  on  the  Funded  and  Floating  Debt,  and 
Dividends  on  Stock  are  charged  to  “Transportation.” 

“ Transportation”  is  charged  with 

Interest  on  Funded  and  Floating  Debt. 

Dividends  on  Stock. 

Rent  of  Union  Railroad. 

Taxes. 

T’ransportation  Expenses,  and  sucli  other  items  as  properly  belong  to  it. 

Transportation  is  credited  with  the  Earnings  of  the  Road,  such  as  Freight^ 
Earnings,  Passenger  Earnings,  &c.,  as  will  more  fully  appear  from  the  tabu- 
lar statement  of  Earnings. 

4.  As  to  other  charges  ? 

There  are  no  other  charges,  except  the  current  busine.ss  of  the  Comi)any 
between  other  Railroad  Companies  or  individuals. 

5.  As  to  Income  and  Earnings  ? 

The  Earnings  of  the  Company  are  principally  made  up  from  the  trans- 
portation of  freight  and  passengers. 

The  Freight  Earnings  are  made  up  from  the  waybills  of  goods  transported 
over  the  Road.  Each  Agent  is  charged  with  the  freight  and  charges  on  the 
goods  destined  for  his  station,  as  per  the  waybills.  When  an  Agent  forwards 
any  goods,  he  makes  a waybill  of  the  same  to  be  sent  with  the  goods,  and  a 
duplicate  waybill  is  also  made  and  sent  to  the  Chief  Clerk,  who  has  charge 
of  the  details  of  the  freight  accounts  : thus  having  a complete  check  upon 
the  Agent  who  is  to  account  for  the  freight  money.  In  making  up  the 
Freight  Earnings,  which  are  made  up  from  the  totals  of  the  waybills  each 
month,  if  any  portion  has  been  transported  over  any  connection  roads,  that, 
portion  is  separated  from  the  proportion  belonging  to  the  New  York  and 
Erie  Railroad,  and  credited  to  the  road  to  which  it  belongs — the  “ Freight 
Earnings”  account  being  credited  only  with  the  amount  belonging  to  the 
New  York  and  Erie  Railroad  Company. 

The  Passenger  Earnings  arc  made  up  from  the  sales  of  tickets  by  the  dif- 
ferent Agents.  The  Agents  report  the  sales  daily,  which  are  charged  to 


8 


them,  and  their  reports  are  verified  by  the  comparison  of  the  tickets  col- 
lected and  returned  by  the  Conductors,  with  the  Agents’  reports  of  sales. 

In  making  up  the  Passenger  Earnings,  “ Passenger  Earnings  ” account  is 
credited  only  with  the  proportion  of  the  tickets  sold  belonging  to  this  Com- 
pany ; if  any  are  sold  to  go  .beyond  our  own  road,  the  proper  amount  is 
separated  from  the  total  of  ticket  sales  and  credited  to  the  road  to  which  it 
belongs. 

“ Passenger  Earnings  ” account  is  credited  only  with  the  amount  belong- 
ing to  the  New  York  and  Erie  Kailroad  Company ; all  the  connecting  roads 
get  their  appropriate  credit  without  reference  to  the  Earnings  of  the  New 
York  and  Erie  Railroad. 

6.  In  reference  to  ilie  colkcUon  of  the  Earnings. 

Each  Agent  is  charged  with  the  freight  received  at  his  station,  and  any 
amount  he  may  collect  on  freight  which  is  prepaid  before  being  forwarded  ; 
also  with  the  passenger  tickets  sold  by  him.  He  is  required  to  send  to  the 
Treasurer  daily  all  the  money  be  collects,  which  he  gets  credit  for  in  the 
manner  as  explained  in  No.  1 of  these  explanations.  Each  Agent  is  required 
to  send  to  the  General  Book-keeper,  monthly,  a detailed  balance  sheet  of  all 
the  business  at  his  station,  which  is  carefully  examined  and  returned  to  him 
for  correction,  if  any  errors  are  discovered.  The  Agents  thus  account  for 
all  the  business  done  by  the  Company,  if  any  of  it  belongs  to  other  roads  ; 
the  Treasurer  pays  the  amounts  which  are  charged  to  such  other  roads,  they 
first  having  received  the  appropriate  credits  in  making  up  the  Freight  and 
Passenger  accounts ; or  the  Agent  sends  all  the  money  he  receives  to  the 
Treasurer  whether  it  belongs  to  this  Company  or  not.  If  any  portion  be- 
longs to  any  other  Company,  the  Treasurer  is  put  in  funds  to  pay  the  amount. 

It  will  be  seen  from  the  above  that  the  “ Receipts”  is  not  the  true  basis  upon 
which  to  judge  of  the  amount  of  business  done  by  the  Company — the  true 
basis  is  the  Earnings,  the  Earnings  being  only  credited  with  the  amounts 
actually  belonging  to  the  Erie  Company.  The  Receipts  may  include  amounts 
belonging  to  other  Companies,  and  may  not  have  included  in  it  amounts 
due  from  other  Companies,  because  where  a general  account  is  kept  with 
other  Companies  they  may  pay  the  amounts  due  in  General  Account,  which 
may  include  freight  and  passenger  balances,  and  be  credited  with  the  same 
directly  on  the  Cash  Book  if  they  pay  in  cash,  or  bj*  a journal  entry  if  they 
pay  by  note. 

7.  State  how  long  this  system  of  account  ho.s  prevailed,  and  whether  it  gives  a 
just  view  of  the  business  of  the  Company  ? 

The  present  system  of  arriving  at  the  actual  earnings  of  the  Company  has 
been  in  force  since  September  30,  1852,  and  it  is  believed  to  be  as  nearly 
correct  as  the  nature  of  the  business  will  allow.  The  great  point  to  endeavor 
to  arrive  at  is,  to  make  the  credit  side  of  the  Earnings  Account  show  just  the 
amount  earned  by  the  Company.  This  has  been  nearly  attained.  There  will 
be  small  amounts  to  charge  back  by  overcharges,  &c.,  but  the  system  of 
crediting  each  road  with  its  proportion  of  the  business  done,  independently 
of  the  proportion  belonging  to  this  Comj)any,  is  the  true  method  of  arriving 
at  the  Earnings  of  this  Company, 


9 


8.  Whether  the  published  staknmits  sime  October  1,  1852,  the  Earnings  and 
Expenses  of  the  Company  have  been  in  exact  accordance  with  the  boohs  ? 

The  tabular  statement  of  the  Earnings  and  Expenses  for  the  year  ending 
September  30,  1853,  embodied  in  the  Keport  of  the  Directors,  November, 
1853,  are  in  exact  accordance  with  the  books  of  the  Company,  as  is  also  the 
tabular  statement  of  the  Earnings  and  Expenses  for  the  nine  months  ending 
June  30,  1854 

To  our  own  opinion  of  the  excellence  of  this  system,  we 
subjoin  the  evidence  of  Mr.  Holbrook. 

Question.  What  is  your  opinion  of  the  system  of  accounts  and  checks  in 
use  in  the  New  York  and  Erie  Railroad  Company  1 

Answer.  In  the  course  of  my  investigation  I have  had  occasion  to  examine 
and  compare  the  Books,  Returns  and  Statements  of  the  various  departments 
with  the  accounts  upon  the  Ledger  in  the  principal  office,  and  I am  fully 
convinced  that  the  business  of  the  Corporation,  in  all  its  details,  is  most  per- 
fectly arranged ; and  that  the  system  adopted  for  keeping  correct  records  of 
the  earnings  and  disbursements  of  the  Road,  under  their  legitimate  and  ap- 
propriate heads,  cannot  be  surpassed. 

(Signed)  GEORGE  HOLBROOK. 


ACCOUNTS  AND  REPORTS  SINCE  1852. 

Having  satisfied  ourselves  of  the  correctness  of  the  system, 
we  proceeded  with  the  examination.  The  accountant  found 
all  the  books  accurately  kept.  The  Ledger  Balances  were 
audited  by  him,  and  the  reports  compared  with  them  by  the 
Committee.  The  published  Treasurer’s  Eeport  of  Septem- 
ber 30,  1853,  the  Condensed  Balance  Sheet  of  that  date, 
in  the  Report  to  the  Stockholders  in  November,  1853,  (B.) 
and  the  Condensed  Balance  Sheet  of  June  30, 1854,  (C.)  are 
certified  to  be  correct,  as  are  also  subsequent  results  con- 
tained in  the  annexed  Schedules  purporting  to  be  derived 
from  actual  returns.  Those  which  are  estimated  are,  in  our 
judgments,  near  the  actual  results. 


STATE  OF  THE  STOCK  ACCOUNT. 

The  examination  of  the  Stock  Ledger  shows  that  depart- 
ment to  have  been  conducted  with  equal  accuracy.  We  sub- 
join the  Report  of  Mr.  Holbrook,  and  also  a certificate 
from  Mr.  White,  a gentleman  employed  by  the  Company, 


10 


independently  of  Mr.  Holbrook,  to  do  a similar  service, 
after  the  discovery  of  the  frauds  in  the  Transfer  Office  of 
the  New  Haven  Kailroad  Company. 

New  York,  October  7,  1854. 

Gentlemen, — From  a careful  examination  of  the  Stock  Ledgers  of  the 
New  York  and  Erie  Railroad  Company  to  this  date,  I find  100,177  shares  to 
the  credit  of  2,336  Stockholders';  and  62.5884-10,000  shares  of  Unconsolidated 
and  Fractional  Stock  which,  in  the  aggregate,  will  be  found  to  agree  with 
the  amount  of  the  Capital  Stock  upon  the  Ledger  of  the  Company. 

Respectfully  yours,  &c., 

GEORGE  HOLBROOK. 

To  the  Committee  of  Iiivestis;aUon,  ) 

New  York  and  Erie  R.  R.  Co.  ) 


New  York,  October  6,  1854. 

I certify  that  I have  carefully  examined  the  Stock  Certificate  account  of 
the  New  York  and  Erie  Railroad  Company  covering  a period  of  ten  years, 
or  from  the  time  of  the  consolidation  of  the  old  stock.  I have  made  a com- 
plete list  of  all  outstanding  certificates,  and  find  it  to  compare  with  the  Stock 
List  of  the  Company,  and  that  there  are  no  certificates  outstanding,  unless 
covered  by  Stock,  without  being  accounted  for. 

(Signed,)  JUSTIN  D.  WHITE. 


STATEMENT  OF  THE  STOCK  AND  OTHER  INDEBTEDNESS. 

Between  September  30,  1852,  and  September  30,  1853, 
the  stock  was  increased  $2,233,099  91  : the  Funded  Debt 
$2,170,000  : and  the  Floating  Debt  $300,619  66. 

Between  September  30,  1853,  and  June  30,  1854,  the 
same  accounts  were  increased  as  follows : Stock,  $23,867  76  : 
Funded  Debt,  $1,934,131  10  : Floating  Debt,  $126,848  88. 

The  total  increase  therefore  in  the  Stock,  Funded,  and 
Floating  Debt,  between  September  30,  1852,  and  June  30, 
1854,  was  $6,788,567  31  (G.) 

On  the  30th  September,  ult.,  the  Stock,  Funded  Debt, 
and  Bills  Payable  amounted  to  $34,850,004  90  (H.)  The 
books  not  being  yet  written  up  (which  is  impossible  from 
the  nature  and  extent  of  the  Company's  business),  we  can- 
not give  the  exact  Floating  Debt  on  that  day. 

On  the  issue  of  Stock  since  September,  1852,  the  Company 
have  suffered  a loss  of  $215,645  76,  principally  through 


11 


sales  of  stock  hypothecated  for  purchase  of  iron.  The  iron 
is  said  to  have  advanced  nearly  enough  to  cover  the  loss. 
The  discount  in  the  sales  of  Bonds  of  the  Company  during 
the  same  time  has  been  $235,158  97. 

The  condition  of  the  Floating  Debt  on  the  30th  June, 
merits  attention,  (D.)  The  Bills  Payable  account  on  that 
day,  amounted  to  $2,709,585  78.'"*  The  total  liabilities  of 
the  Company  to  mature  in  the  months  of  July,  August  and 
September,  amounted  to 


July. 

Aug. 

Sept. 

Total. 

Floating  Debt, S805, 056  16 

#648,019  30 

#543,792  60 

#1,996,868  06  i 

Interest,  . . . 

. . . 122,500  00 

245,000  00 

315,000  00 

682,500  00  i 

Total,  . 

...#927,556  16 

#893,019  30 

#858,792  60 

#2,679,368  06  ' 

Owing  to  these  heavy  payments  maturing  in  such  prox- 
imity, the  Company  found  themselves  in  a critical  situation. 
After  obtaining  about  $350,000  on  acceptances  endorsed  by 
various  members  of  your  Board,  and  secured  by  hypothe- 
cation of  the  Bonds  of  1883,  they  executed  three  Mortgages, 
as  follows  : one  dated  August  29,  1854,  to  Cornelius  Van- 
derbilt, on  the  Koad  and  Franchises  to  secure  him  as 
endorser  of  their  acceptances  to  the  amount  of  $400,000  : 
one  dated  August  29,  1854,  to  Cornelius  Vanderbilt,  on  180 
Locomotives,  2,975  Cars,  Platform  Trucks  and  Baggage 
Crates,  and  upon  other  goods  and  chattels  of  the  Company, 
to  secure  the  same  : and  one  dated  August  31,  1854,  to 
Daniel  Drew,  to  secure  him  for  accommodation  notes  and 
endorsements  to  the  amount  of  $981,168  20,  and  'for  all 
future  endorsements,  the  whole  not  to  exceed  $1,000,000  at 
any  one  time.  The  liabilities  secured  by  these  Mortgages 
are  shown  by  Schedule  (H.)  Thus,  while  the  net  earnings  of 
the  Eoad  for  the  quarter  were  between  seven  and  eight 
hundred  thousand  dollars,  and  its  prospects  were  more 
favorable  for  the  future,  the  Company  was  forced,  by  crowd- 

* The  Company  had  at  this  date  $1,392,000  of  the  Bonds  of  1883  contracted  for  to  be  de- 
livered in  monthly  instalments.— B.  E.  Bremnek,  General  Book-keeper. 


12 


ing  such  heavy  payments  into  a time  of  great  depression  and 
want  of  confidence,  to  pledge  all  its  available  assets  to  meet 
a part  of  its  Floating  Debt,  and  its  stock  and  securities  were 
lamentably  depreciated  in  consequence. 

The  measures  adopted  gave  the  necessary  temporary  relief, 
and  it  is  the  opinion  of  your  financial  officers  that  such  an 
emergency  cannot  occur  again.  We  understand  that  the 
contracts  for  Boiling  Stock  which  increased  the  present  heavy 
Floating  Debt  are  either  nearly  completed,  or  are  cancelled. 
We  are  assured  that  no  new  contracts  have  been  made  since 
March  last,  and  that  of  the  seventy-five  Engines  contracted 
for  to  meet  the  necessities  of  the  Koad,  the  contracts  for 
twenty-two  have  been  cancelled  with  the  consent  of  the 
contractors,  and  sixteen  remain  to  be  delivered.  This  wise 
arrangement  has  checked  the  increase  of  the  Floating  Debt, 
and  if  the  policy  be  persisted  in,  the  affairs  of  the  Company 
will  soon  be  put  on  a sounder  basis.  In  our  judgment,  it  is 
better  to  pause  where  you  are,  until  additions  can  be  made 
at  a less  sacrifice  of  the  means  and  credit  of  the  Company. 


RULES  FOR  DETERMINING  THE  CLASSIFICATION  OF  ACCOUNTS, 
AND  DISTINGUISHING  THOSE  BELONGING  TO  CONSTRUCTION 
FROM  THOSE  BELONGING  TO  TRANSPORTATION. 

The  Superintendents  have  furnished  us,  at  our  request, 
with  the  following  General  Kules  for  governing  the  classifi- 
cation of  construction  and  transportation  charges.  They 
seem  to  be  sound  in  principle  : 

RULES 

Adopted  on  the  New  York  and  Erie  Railroad  m determining  the  Classification 
of  Accounts,  and  distinguishing  those  properly  chargeable  to  “ Constrvxtion^^ 
from  such  as  belong  to  “ Transportation.'’^ 

* 

1st.  All  work  done  with  special  reference  to  construction  of  Second  Track. 

2d.  All  new  Switches  or  c.v.tensions  of  old  ones. 

8d.  All  new  structures  of  ever}"  description  (not  renewals  of  others  that  » 
have  been  used  up  or  destroyed)  and  all  additions  to  old  ones. 


13 


4th.  Widening  of  embankments  not  rendered  necessary  from  the  washing 
away  of  materials,  but  from  their  not  having  originally  been  constructed  of 
sufficient  width. 

5th.  New  Ditches  that  have  been  found  necessary  since  the  Road  has  been 
brought  into  use, 

6th.  Removing  material  from  Slopes  that  were  originally  too  steep.* * 

7th.  Difference  in  value  of  new  materials,  in  renewals,  as  compared  with 
the  original  value  of  such  as  were  previously  used,  to  wit : increased  weight 
of  Rails  and  Chairs ; increased  number  of  Cross  Ties ; substitution  of  Iron 
for  Log  Pipes ; permanent  Station  buildings  for  Shanties,  &c.,  &c. 

We  the  undersigned  Superintendents  of  the  several  Divisions  of  the  New 
York  and  Erie  Railroad,  do  hereby  certify  that  the  above  Rules  furnish  the 
theory  upon  which  we  have  acted  and  are  now  governed  in  the  classification 
and  allotment  of  our  accounts. 

A.  S.  WHITON,  Sup’t  Eastern  Division  and  Union  Railroad, 
W.  H.  POWER,  ‘‘  Delaware  “ 

R.  N.  BROWN,  “ Susquehanna  ‘‘ 

J.  A.  HART,  “ Western  “ 

September  14,  1854. 


CONSTRUCTION  ACCOUNT. 

On  the  30th  September,  1852,  the  Construction  Account 
amounted  to  (A.)  _ _ . $26,841,576  79 

Added  to  Sept.  30, ’53,  (B.)  $4,381,257  42 

Do.  “ June  30, ’54,  (C.)  1,654,121  80  6,035,379  22 

Total,  June  30,  1854,  (C.)-  - $32,876,956  01 

The  Superintendent  states  that  he  deems  it 

“ Essentially  necessary  for  the  economical  working  of  the  Road,  that  the 
Delaware  River  Bridge,  the  engine  houses  and  turntable  at  Port  Jervis,  and 
• the  engine  houses  at  Susquehanna,  the  connection  of  the  main  track  with 
Centre  street  Pier  at  Dunkirk,  and  the  switches  on  the  Delaware  Division, 
should  be  completed,  which  will  involve  an  outlay  of  about  $30,000.” 


New  York,  September  19, 1854. 

*Homer  Ramsdell,  Esq.,  President. 

Sir  In  explanation  of  the  6th  item  of  work  chargeable  to  Construction,  i.  e.,  “ Removing 
material  from  Slopes  that  were  originally  too  steep,”  I would  remark  that,  in  constructing 
roads,  the  practice  is  to  grade  the  slopes  through  excavations,  to  what  is  termed  the  “ natu* 
ral  slope,”  the  incline  upon  which  the  materials  will  rest  without  sliding.  The  natural  slope 
of  course  differs  according  to  the  character  of  the  material,  some  kinds  of  rock  requiring  no 
sloping,  whilst  sand  requires  to  be  very  flat.  This  natural  slope,  therefore,  varies  from  a per- 
pendicnlar,  or  90  degrees,  to  two  base  to  one  perpendicular,  or  angle  of  26§  degrees.  In  the 
construction  of  this  Road,  in  many  cases  a way  was  excavated  for  laying  the  track  sufficient 
to  admit  of  the  passage  of  trains,  leaving  the  necessary  sloping  to  be  done  after  the  Road 
was  brought  into  operation,  and  it  is  for  doing  this  work  that  the  charge  is  made  against 
Construction,  and  embraced  in  the  6th  item  above  referred  to. 

Yours  respectfullv, 

D.  C.  McCALLUM, 
GenU  Sup’t. 


14 


An  expenditure  of  $500  will  complete  the  second  track 
on  the  Union  Eailroad.  The  locomotives  and  cars  for  which 
the  Company  are  still  liable,  in  addition  to  acceptances, 
amount  to  $218,000 ; and  $10,000  will  be  required  to  com- 
plete the  Neversink  Bridge,  which  is  deemed  important, 
though  not  essential.  It  is  believed  that  a rest  may  then  he 
made  in  the  Construction  Account.  We  deem  this  highly 
desirable,  and  recommend  that  the  Construction  Account 
be  then  closed,  and  that  future  additions  he  made  from 
Earnings. 


ADDITIONS  TO  THE  BED,  TRACK,  CUTTINGS,  EMBANKMENTS, 
ROLLING  STOCK,  ETC.,  SINCE  SEPTEMBER  30,  1852. 

Having  ascertained  the  increased  indebtedness  of  the  Com- 
pany, and  the  increased  cost  of  the  Koad  since  September, 
1852,  and  having  learned  the  principles  governing  the  dis- 
tribution of  accounts,  our  next  inquiry  was  concerning  the 
expenditure  of  this  large  sum  of  money.  On  this  head  we 
depend  entirely  upon  information  derived  from  the  General 
Superintendent,  in  reply  to  oiU'  question,  which  we  return 
herewith,  (Appendix  II.)  If  any  topograpliical  informa- 
tion he  necessary  to  the  comprehension  of  his  returns,  it 
may  be  found  in  the  Directors’  Eeport  to  the  Stockliolders, 
in  November,  1853. 


PROPERTY. 

The  next  natural  inquiry  was  concerning  the  property 
representing  this  expenditure. 

The  Company  are  possessed  of  a broad  gauge  road  464 
miles  in  length,  having  termini  on  the  Hudson  at  Newburgh 
and  Piermont,  and  on  the  Lakes  at  Dunkirk,  and  connected 
with  New  York  at  Jersey  City,  by  the  Union  Eailroad,  of 
which  they  hold  a lease.  This  Eoad  is  thoroughly  built, 
and  in  perfect  repair,  and  affords  to  travellers  accommoda- 
tions and  comforts  unequalled  on  any  other  American  line. 


15 


Tributary  to  it  are  625  miles  of  road  with  wide  gauge,  and 
75  with  narrow  gauge.  The  lands  through  which  it  luns 
are  held  by  a clear  title,  and  are  all  paid  for,  with  some  few 
exceptions  in  the  case  of  minor  heirs,  &c.  One  hundred  and 
eighty  miles  are  laid  with  double  track,  and  eighty-two 
miles  with  sidings  and  turnouts.  The  stations,  woodsheds, 
.and  other  buildings,  incidental  to  such  a property,  are  re- 
presented to  be  sufficient.  In  addition  to  these,  the  Com- 
pany hold  a long  lease  of  a valuable  water  property  and 
offices  in  the  City  of  New  York.  ^ 

This  estate  has  cost  a large  sum  in  interest  and  discounts 
above  the  actual  amount  paid  for  land,  labor  and  materials. 
In  constructing  it  the  Company  was  obliged  by  its  necessi- 
ties to  keep  in  advance  of  its  means,  having  only  the  alter- 
native of  abandoning  sums  already  spent,  or  going  on  at  a 
sacrifice.  The  individual  members  of  the  Board,  as  we  are 
informed,  lent  their  names  freely  for  large  amounts,  without 
compensation.  The  heavy  fioating  debts  thus  contracted 
were  met  from  time  to  time  by  sales  of  securities  at  a dis- 
count. Justice,  however,  requires  that  we  should  state  that 
some  parts  of  this  property  are  believed  to  have  sufficiently 
appreciated  by  reason  of  the  advances  in  labor  and  materials 
to  be  nearly  or  quite  Avorth  the  sums  absorbed  in  them. 

The  outstanding  accounts  and  bills  receivable  cannot  be 
exactly  ascertained,  the  books  not  being  made  up  to  Sep- 
tember 30.  On  the  30th  of  June  last,  they  amounted  to 
$390,470  54.  We  are  told  that  they  are  probably  now  about 
equal  to  the  accounts  payable. 

The  other  property  is  as  follows  : 


2,962  Cars,  valued  by  detailed  estimate  about SI, 889,162  00 

183  Locomotives,  “ “ 1,736,903  00 

Materials, 555,804  81 

Fuel, 223,321  70 

One-third  Interest  in  Lake  Erie  Steamers  (cost) 143,437  43 

“ “ Propellers  “ 72,337  27 

Four-fifth  Interest  in  Francis  Skiddy,  “ ....  100,000  00 

Corning  and  Blossburg  Railroad  Bonds, 9,000  00 

Loan  to  Canandaigua  and  Niagara  Falls  Railroad,. . 100,000  00 


16 


Cash  on  Sept.  30,  about, 140,000  00 

Real  Estate, 12,311  80 

Owners  Propeller  Bulfalo, 18,542  88 

Bond  City  of  Toledo, 100  00 


Total, S5,000,920  89 


Our  attention  has  been  called  to  the  fact  that  with  scarcely 
an  exception,  the  New  York  and  Erie  Kailroad  Company 
has  refrained  from  contributing  to  the  construction  of  tribu- 
taries. We  think  that  the  Directors  may  point  with  pride 
to  this  evidence  of  good  judgment. 


SOURCES  OF  INCOME. 

These  are — 1,  Transportation  : 2,  Mails  : 3,  Storage  : 
4,  Kents  : 5,  Hire  of  Engines  and  Cars  : 6,  Telegraph  : 

7,  Dividends  on  Buffalo  and  State  Line  Railroad  Stock  : 

8,  Miscellaneous  (I.) 

The  Buffalo  and  State  Line  Stock  has  been  lately  sold. 
The  amount  of  earnings  from  all  these  sources  except  the 
first,  has  been  about  $250,000  for  the  last  fiscal  year.  The 
comparative  statements  of  Transportation  Earnings  (the 
main  branch  of  revenue)  for  three  years  is  as  follows  : 


1851-52. 

1852-53. 

1853-54. 

Passenger, . . . 

. ..  SI ,286,732  38 

SI, 601,209  71 

S1,728,068  08 

Freight, 

, 1,761,016  01 

2,537,214  52 

3,394,598  10 

Total,. . . , 

. . . S3,047,748  39 

S4,138,424  23 

S5,122,666  18 

Passenger  Earnings. — In  regarding  the  results,  it  is  to  be 
remembered,  as  to  way  travel,  that  until  this  road  was  built 
the  country  through  which  it  runs  was  not  within  easy  access 
of  the  great  markets,  and  was  consequently  less  densely  popu- 
lated than  more  favored  districts.  It  must  also  be  borne  in 
mind  that  the  through  travel  has  been  long  accustomed  to  fol- 
low the  track  now  occupied  by  the  Canal  and  the  Central  Road 
• — a road  co-extensive  with  the  Erie,  and  offering  nearly  equal 
inducements  to  the  public.  In  regarding  the  total  passenger 
earnings  for  the  year  just  passed,  the  serious  epidemic  pre- 


17 


vailing  through  the  country  must  be  taken  into  consideration  ; 
and  in  comparing  them  with  last  year,  we  must  remember 
that  the  Crystal  Palace  then  drew  numbers  to  New  York. 
We  think  you  have  reason  to  be  satisfied  with  the  results  in 
this  department.  The  increase  of  earnings  has  been  con- 
stant, notwithstanding  the  influences  to  check  them.  They 
increased  this  year  nearly  eight  per  cent  over  those  of  last 
year,  and  34  1-4  per  cent  over  those  of  1851-2.  The  per 
head  cost  of  carriage  has  not  decreased  essentially,  if  any  ; 
but  it  is  supposed  that  decided  reductions  in  the  expenses 
will  result  from  recent  changes  and  improvements.  The 
through  tariffs  have  also  been  recently  advanced  111-2  per 
cent,  on  the  former  rates,  which  will  be  a clear  gain  to  the 
Company  as  long  as  maintained.  The  through  travel,  how- 
ever, bears  but  a small  numerical  relation  to  the  way.  For 
the  ten  months  ending  with  July,  it  was  only  7.45  per  cent 
of  the  entire  travel. 

Freight  Earnings. — The  great  expansion  of  the  business 
of  your  Eoad,  is  in  the  direction  of  Freight.  The  Freight 
earnings  of  the  year  just  closed  are  33  4-5  per  cent  more 
than  those  of  last  year,  and  92  3-4  more  than  those  of  the 
year  before.  They  now  amount  to  the  enormous  sum  of 
83,394,598,  and  Freight  transportation  keeps  from  one  to 
two  thousand  freight  cars  in  constant  employ. 

The  increase  in  tonnage  for  the  nine  months  ending  J une 
30,  was  somewhat  less  than  the  increase  in  earnings.  The 
total  tonnage  moving  West  increased  about  8 per  cent,  or, 
deducting  the  products  of  the  forest,  vegetable  food,  and 
manufactures  about  24  per  cent : the  tonnage  moving  East 
increased  about  22  per  cent. 

The  present  Way  Tariff  (except  for  Lumber,)  was  adopt- 
ed in  September,  1853,  and  it  is  proposed  to  continue  to 
work  under  it.  The  Lumber  Tariff  was  adopted  in  Febru- 
ary last,  being  an  increase  of  10  per  cent  on  former  prices, 
and  gives  an  average  of  1.83  cents  per  ton  per  mile  on  long 
and  short  distances. 

2 


18 


The  through  Tariff  on  many  articles  is  regulated  by  agree- 
ments with  competing  lines.  The  rates  on  freight  beyond 
Buffalo  and  Dunkirk,  were  lately  advanced  five  percent.  The 
additional  sum  received  under  this  arrangement  will  be  clear 
gain  to  the  road. 

The  tonnage  moving  West  for  the  nine  months  ending 
June  30,  1854,  was,  (in  pounds) — 

Way,  - 368,828,100,  yielding  #487,600  01 

Through,  53,170,440,  369,459  03 

421,998,550  #857,059  04 

The  total  tonnage  moving  East,  for  the  same  time,  was, 
(in  pounds) — 

Way,  - 466,309,100  yielding  #899,554  93 

Through,  158,686,590  ''  681,636  25 


624,995,690  #1,581.191  18 

The  total  number  of  pounds  carried  one  mile  during  the 


same  time,  were 
Way  West, 
Through  West, 
Way  East, 
Through  East, 


31,636,326,566 

22,663,445,414 

73,231,589,420 

64,507,690,910 


192,039,052,310 

Thus  it  appears  that  the  Earnings  amount  to,  per  ton 
of  2,000  pounds  per  mile.  Way  West,  3.08  cents  ; Through 
West,  3.26  cents  ; Way  East,  2.45  cents  ; Through  East, 
2.11  cents.  The  average  Way  Earnings  East,  are  depressed 
by  the  low  rates  for  lumber  and  coal.  The  Through 
Freights  West  are  generally  of  a higher  class  than  the 
Through  East. 

The  proportion  of  way  to  through  business  is  almost  as 
great  in  Freight  as  in  Passenger  transportation.  87  1-6  per 
cent,  in  bulk,  of  the  Freight  going  West,  and  74  1-2  per  cent 
of  that  going  East,  for  the  nine  months  ending  June  30,  was 


19 


way.  We  regard  this  as  a very  satisfactory  statement, 
since  the  way  Freight  is  decidedly  more  profitable  than  the 
through  Freight. 

The  unrivalled  advantages  which  the  New  York  and  Erie 
Kailroad  enjoys  for  the  transportation  of  freight  are  so  well 
understood  that  we  shall  not  dwell  upon  them.  Other 
reports  have  fully  set  forth  the  magnitude  of  its  connection ; 
and  we  have  already  shown  the  business  which  flows  over 
the  road  and  the  means  which  it  has  for  doing  it.  Six  hun- 
dred and  thirty-one  men,  we  are  informed,  are  in  motion 
daily  upon  its  freight  trains,  beside  those  employed  in  its 
shops,  stations  and  offices.  The  completion  of  the  double 
track  allows  such  an  economy  in  the  use  of  rolling  stock,  that 
it  can  be  kept  in  constant  repair,  and  we  are  assured  by  the 
Superintendent  that  it  will  answer  the  present  and  pro- 
spective wants  of  the  Company  better  than  was  supposed. 

The  results  of  the  three  years  under  consideration,  show 
that  freight  is  a lucrative  source  of  revenue  ; but  are  not  of 
much  use  in  determining  its  relative  value.  In  1851-2, 
when  the  Passenger  Earnings  were  42.2  per  cent  of  the 
whole,  the  Transportation  Expenses  absorbed  56  3-4  per 
cent  of  the  Earnings.  In  1852-3,  when  the  Passenger 
Earnings  were  38.7  per  cent  of  the  whole,  the  Transporta- 
tion Expenses  were  58  1-4  per  cent  of  the  Earnings.  Dur- 
ing this  year  Transportation  was  credited  with  $125,270  85, 
on  account  of  the  use  of  the  road,  and  rolling  stock  for  the 
construction  of  the  double  track.  This  would  diminish  the 
per  centage  to  55  3-4.  In  1853-4,  when  the  Passenger 
Earnings  constitute  33.7  per  cent  of  the  whole,  the  Trans- 
portation Expenses  are  53  1-2  per  cent  of  the  Earnings. 
The  similar  items  on  account  of  construction  this  year 
amount  to  $63,991  39,  which  reduces  the  per  centage  to 
52  1-4.  It  is  to  be  observed  in  regard  to  these  charges  for 
construction,  that  as  the  business  obstructed  the  road,  and 
excluded  more  profitable  traffic,  they  were,  in  our  judgment, 
a fair  credit  to  Transportation.  They  were  credited  at  the 
rate  of  1.71  cents  per  ton  per  mile. 


20 


CHARGES  UPON  INCOME. 

These  are — 1,  Transportation  Expenses  ; 2,  Rent  of  the 
Union  Railroad  ; 3,  Loss  in  running  connecting  Steamers  ; 
4,  Depreciation  ; 5,  Interest  ; 6,  Dividends. 

Transportation  Expenses. — We  have  already  shown  that 
the  relative  proportion  of  Transportation  Expenses  to  Earn- 
ings is  less  this  year  than  last.  Actually  they  have  in- 
creased ; principally  in  the  repairs  of  engines,  cars,  track 
and  roadway,  and  incidentals,  (G.)  We  are  informed  by 
the  Superintendent  that  the  changes  which  the  completion 
of  the  double  track  permits,  will  effect  a decided  reduction 
in  the  relative  transportation  expenses  of  the  coming  year. 
All  bear  testimony  to  the  admirable  system  now  prevailing- 
in  this  department.  Notwithstanding  the  length  of  the 
road  aixl  the  amount  of  its  business,  the  trains  move  with 
great  regularity,  and  accidents  are  rare.  The  telegraj)h 
enables  the  Superintendents  to  know  the  exact  number  of 
trains  on  the  line  at  any  one  time,  and  the  situation  of 
each.  This  almost  insures  against  collision  from  ordinary 
causes. 

Bent  oj-  the  Union  Road. — This  road  connects  the  main 
line  with  the  City  of  New  York.  The  rent  is  $80,100  per 
annum.  There  is  also  a debit  on  the  balance  sheet  of 
$400,000,  for  repairs  and  improvement  to  this  road,  which 
appears  to  us  to  belong  to  the  Construction  Account. 

The  Loss  hy  connecting  Steamers  on  the  Lakes  arises  from 
the  necessity  of  connection  on  those  waters  where  trade  and 
travel  have  been  used  to  flow  to  other  channels.  We  are 
informed  that  two-thirds  of  the  interest  in  them  has  been 
advantageously  sold  to  other  parties.  The  loss  by  the  Fran- 
cis Skiddy,  on.  the  Hudson,  grows  out  of  the  following  trans- 
actions : The  New  York  Central  Railroad  and  the  New 
York  and  Erie  Railroad  were  com23etitors  in  western  cities 
for  the  New  York  travel.  Owing  to  the  advantages  derived 
from  the  North  River  transportation,  the  Central  Road  was 
able  to  offer,  in  Cincinnati  and  elsewhere,  to  carry  passen- 


21 


gers  to  New  York  cheaper  than  the  New  York  and  Erie. 
The  Executive  Committee,  in  whom  the  general  power  over 
steamers  had  been  vested  by  a previous  vote  of  your  Board, 
found  it  necessary  to  take  some  steps  to  counteract  this  ad- 
vantage, and  purchased  of  parties  having  no  interest  in,  or 
connection  with  the  New  York  and  Erie  Bailroad,  the  Fran- 
cis Skiddy,  to  run  between  New  York  and  Newburgh  in 
connection  with  trains  going  from  and  arriving  at  that  place. 

Depy'eciation. — No  allowance  has  been  made  for  deprecia- 
tion. It  appears  that  the  sums  annually  expended  in  re- 
pau’S  leave  the  track  and  roadbed  as  good  at  the  end  of  the 
year  as  at  the  beginning.  But  as  to  station  houses,  water 
stations,  wood  sheds,  bridges,  rolling  stock,  &c.,  some  think 
that  a sum  in  addition  to  repairs  should  be  set  aside  annu- 
ally to  keep  them  good.  Others,  equally  well  informed,  as- 
sure us  that  they  are  kept  constantly  good  by  repairs  and 
replacements  at  the  expense  of  transportation.  Hitherto  it 
has  not  been  necessary  to  replace  much  of  the  rolling  stock. 
Possibly,  when  replacements  become  necessary,  the  per 
centage  of  repairs  will  be  increased,  which  will  amount  to 
the  same  thing  as  an  annual  allowance  for  depreciation.  On 
these  points  the  Superintendent  says  : 

Some  of  the  property  of  the  Company  has  appreciated,  -whilst  the  other  lias 
depreciated  in  value,  but  to  what  amount  I am  unable  to  state.  The  road- 
bed and  real  estate — two  important  items  in  the  cost  of  construction — arc 
enhanced  in  value,  whilst  the  superstructure,  buildings,  roiling  stock  and 
machinery  have  depreciated : whether  they  .will  depreciate  still  more,  de- 
pends upon  the  care  to  be  exercised  in  their  preservation  and  the  amount  of 
repairs  to  be  expended  upon  them.  1 have  uo  doubt  that  an  examination  at 
any  period  of  time  would  show  the  property  to  be  of  less  value  than  its 
original  cost,  but  at  the  same  time  I have  but  little  doubt  that  if  our  j^resent 
system  of  repairs  is  continued,  and  an  annual  amount  expended  for  repairs 
equal  to  that  of  last  year,  it  would  be  wortli  as  much  (uie  hundred  years 
hence  as  at  the  present  time ; or  if  not,  the  dilference  would  be  so  small  as 
to-  require  but  very  little  to  be  charged  annually  for  dej)reci;dion  to  make 
it  so.” 

Interest. — The  annual  interest  on  the  Funded  Debt, 
when  the  Bonds  of  1883  are  all  issued,  will  be  $1,645,000. 
We  suppose  the  Floating  Debt  will  be  retired  as  fast  as 
possible. 


22 


Dividends  should  be  declared  only  when  fairly  earned, 
after  payment  of  all  these  charges,  and  when  the  financial 
conditions  of  the  Company  will  permit.  We  think  that 
none  should  he  declared  until  the  Floating  Debt  is  disposed 
of.  We  also  recommend  a sinking  fund  towards  meeting  the 
Funded  Debt,  unless  some  more  complete  scheme  can  be  de- 
vised. 


GROSS  AND  NET  EARNINGS. 

1852-53. 

^4,318,962  36 

S2, 407, 373  13 
111,408  55 
1,298,291  29 

3,817,072  97 


Net  Earnings, $501,889  39 

1853-4,  Complete  to  June  30,  thence  part  Return  and  part  Estimate, 

Gross  Earnings, $5,376,273  14 

Transportation  Expenses, $2,740,960  42 

Other  Charges  as  below, 398,565  05 

Interest  on  Funded  Debt, 1,491,666  89 

4,631,192  36 


Net  Earnings, $745,080  78 

The  following  are  the  other  charges  in  the  year  1853-4 : 

Rent  of  Union  Railroad,  $80,100  00 

Loss  in  running  Lake  Steamers, 74,202  77 

Do,  do,  Francis  Skiddy,  14,153  64 

Transportation  Expenses  prior  to  Sept,  30,  1853,  not  re- 
ceived so  as  to  be  carried  into  last  year’s  account, . . . 42,531  47 

Hire  of  Engines  and  Cars, 24,858  87 

Interest  on  Floating  Debt  to  June  30, 112,718  30 

Estimate  of  same  for  3 months, 50,000  00 


398,565  05 

It  is  estimated  that  during  the  last  year  the  gross  earn- 
ings were  decreased  about  $300,000  by  the  break  of  gauge, 
the  strike  of  Engineers,  and  the  May  freshet. 


Gross  Earnings, 

Transportation  Expenses . 

Other  Charges, 

Interest  on  Funded  Debt, 


23 


THE  PROSPECTIVE  REVENUE. 

The  President  estimates  the  gross  earnings  for  the  next 
year  at  $6,000,000.  We  are  not  well  enough  acquainted 
with  the  data  upon  which  he  forms  his  judgment,  to  be  able 
to  give  an  opinion  concerning  the  precise  result  : but  in  so 
far  as  it  is  an  expression  of  confidence  in  a decided  increase, 
both  in  the  gross  and  net  earnings  of  the  Koad,  we  fully 
agree  with  it. 

Notwithstanding  the  systematic  management  of  the  Eoad, 
it  is  the  opinion  of  your  officers  that  decided  reductions  may 
yet  be  effected  in  the  Transportation  Expenses.  By  the  in- 
crease in  Tariffs,  which  has  gone  into  efiect,  and  the  promised 
decrease  in  expenses,  we  think  that  you  may  count  upon  a 
decided  gain  upon  the  results  of  the  year  just  closed,  even 
without  the  anticipated  increase  in  business. 

But  we  do  not  think  that  any  past  results  are  to  be  taken 
as  the  measure  of  the  future  business  of  the  New  York  and 
Erie  Railroad.  From  the  opening  in  1851,  until  May  last, 
it  was  in  the  condition  of  a man  with  one  arm.  It  had 
virtually  but  one  track,  with  insufficient  sidings  and  turn- 
outs (great  as  they  were,)  with  incomplete  roadbed,  cut- 
tings, embankments  and  bridges;  with  station  houses  unequal 
to  the  business  ; and  with  a rolling  stock  constantly  added 
to,  and  yet  ever  behind  its  wants.  It  was  also  used  in  the 
construction  of  its  second  track  to  the  exclusion  of  a better 
paying  business. 

These  things  are  now  changed.  With  the  exception  of 
7 1-2  miles,  the  proposed  second  track  is  completed  and  in 
use  ; the  old  track  is  in  better  order  than  ever  before  ; the 
cuttings  are  widened  and  brought  to  the  natural  slope  ; the 
embankments  are  in  good  order  ; the  station  houses,  water 
stations,  wood  sheds  &c.,  are  esteemed  adequate  to  wants  as 
shown  by  experience  ; the  bridges  are  represented  as  in  good 
repair ; and  the  rolling  stock,  though  not  as  large  as  the 
Directors  seem  to  have  desired,  will  meet  demands  for  some 
time  to  come,  when  the  works  in  progress  are  completed, 
which  can  be  done  for  $270,000. 


24 


The  New  York  and  Erie  Kailroad  now  earns  annually 
about  as  large  a sum  as  was  originally  proposed  to  be  ex- 
pended in  its  construction.  It  is  a competitor  for  the  enor- 
mous passenger  and  freight  business  of  the  Lake  country, 
the  north-west,  and  the  Canadian  Peninsula,  with  New 
York  : and  also  for  that  of  the  Valley  of  the  Ohio  and  the 
Mississippi,  with  which  it  is  soon  to  have  even  better  con- 
nections than  now.  It  passes  through  a line  of  country 
having  no  other  Eastern  outlet  by  rail,  whose  productions 
are  bulky,  and  which  has  liitherto  been  less  densely  peopled 
than  some  other  sections  of  the  State,  only  because  more 
difficult  of  access ; and  its  tributaries  penetrate  some  of  the 
richest  mineral  and  agricultural  lands  in  the  Union. 

When  we  see  what  it  has  already  done,  while  new,  en- 
cumbered, and  without  perfect  connections,  we  have  no 
difficulty  in  agreeing  that  it  is  destined  to  do  decidedly  more 
with  experience,  without  incumbrance  to  the  traffic,  and 
with  connections  established. 

At  the  same  time  we  cannot  shut  our  eyes  to  its  financial 
condition.  We  are  aware  of  the  difficulties  with  which 
your  Board  has  had  to  contend,  and  bear  willing  testimony 
to  your  arduous  and  untiring  exertions  to  surmount  them. 
But  we  think  you  will  agree  with  us,  that  the  recent  critical 
situation  of  the  Company  has  demonstrated  the  imprudence 
of  anticipating  earnings  so  largely,  and  calls  for  frankness 
and  judicious  management  on  the  part  of  the  Directors. 
If  the  public  can  be  assured  that  the  Construction  Account 
is  closed,  and  a scheme  can  be  devised  for  retiring  the  Float- 
ing Debt,  making  at  the  same  time  prospective  provisions 
for  meeting  the  Funded,  we  see  iiotliing  to  prevent  this  Eoad 
from  becoming  one  of  the  most  valuable  railway  properties 
in  the  world. 

To  insure  this  result  we  recommend  : 

1.  That  the  Construction  Account  be  closed. 

2.  An  increase  in  your  Tariff  prices  of  freight  and  pas- 
sengers, both  Way  and  Through.  We  believe  that  an  im- 


25 


mediate  judicious  addition  to  the  present  rates  is  not  only  due 
to  the  Stockholders,  but  will  essentially  conduce  to  the 
permanent  welfare  of  the  Company.  . 

3.  That  no  Dividends  he  paid  till  the  Floating  Debt  is 
disposed  of 

4.  That  a Sinking  Fund  be  established,  to  be  paid  monthly 
into  the  hands  of  Trustees,  independent  of  the  Company. 

5.  That  the  President  and  Vice-President  of  the  Com- 
pany be  required  to  give  their  whole  time  and  undivided 
attention  to  the  duties  of  their  respective  offices.  We 
think  this  is  indispensable  to  the  proper  management  of  so 
large  a Corporation  as  the  New  York  and  Erie  Kailroad 
Company. 

All  of  which  is  respectfully  submitted. 

* JAMES  BROWN, 

THOMAS  TILESTON, 

D.  D.  WILLIAMSON,  ' • 

JOHN  E.  WILLIAMS, 

CALEB  0.  HALSTED, 

DAVID  HOADLEY, 

JOHN  H.  GOURLIE, 

J.  C.  BANCROFT  DAVIS. 


New  York,  October  10,  1851. 


■»  ‘ i'  ' 

% 


APPENDIX  1. 


28 


APPENDIX  I. 


ACCOUNTANT’S  REPORT. 


New  York,  October  6th,  1854. 

Gentlemen  : 

The  ^Schedules  herewith  submitted,  marked  A,  B,  C,  1),  E, 
F,  G,  H,  I,  J,  and  K,  liave  been  prepared  by  the  undersigned  from  the  books 
of  the  New  York  and  Erie  Railroad  Company,  with  which  they  agree  in 
every  particular. 

The  correctness  of  the  books^  and  these  statements,  can  be  fully  relied  upon. 

I have  the  honor  to  be  your  ob’dt  Servant, 

GEORGE  HOLBROOK. 

To  the  Committee  of  Investigation,  i 
New  York  & Erie  R.  R.  Co.  ) 


♦Schedule  A — Statement,  Condensed  Balance  Sheet  of  Sept.  30,  1852. 

B—  “ “ ‘‘  “ of  Sept.  30,  1853. 

C — “ “ “ “ of  June  30,  1854. 

D — “ Floating  Debt,  June  30,  1854. 

E — “ Transportation  Account,  June  30,  1854. 

F — “ Materials  and  Fuel,  June  30,  1854. 

G — “ Increase  of  Liabilities,  1852-53-54. 

H — “ Stock,  Funded  Debt,  and  Bills  Paya.  Sept.  30, 1854. 

I — “ Earnings,  &c.,  1853-54. 

J — “ Expenditures,  1853-54. 

I Rate  per  cent.  Increase  Passenger  and  Freight 
K — “ < Earnings,  and  Expenditures  from  Sept.  30, 

( 1852,  to  Sept.  30,  1854. 


SCHEDULE  (A.) — Condensed  Balance  Sheet,  September  30,  1852. 


29 


1 : ! 1 ;§ 

: 

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8 

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ANHODOV  NOIXOnrnSNOO 


*It  will  be  observed  that  there  is  a variation  of  $269,844  02,  between  this  statement  of  the  Construction  Account,  and  the  one  previously  published,  which  arises 
m the  fact,  that  items  properly  chargeable  to  Construction  under  the  year  ending  Sept.  30,  1852,  had  been  omitt^. 


30 


BS*  For  items  in  detail,  see  printed  Report  of  November,  1853. 


SCHEDULE  (C.) — Condensed  Balance  Sheet,  June  30,  1854. 


31 


SCHEDULE  (D.) — Floating  Debt,  June  30,  1854. 


32 


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83,889,307  04  | 83,889,307  04 


34 


SCHEDULE  (F.)— Materials  and  Fuel,  June  30,  1854. 


1 

Pierniont  Shop, 

S21 1,734  98 
30,937  96 
11,673  68, 
36,569  01 
6,960  58 
235,075  35 
12,478  33 
10,374  92 

i 

I 

iSns([iiehanna  Shoj), 

1 

Elmira  Shoj), 

Dunkirk  Shoj), 

Printing  Office, 

On  llie  line  of  the  Road, 

Oil  and  Waste, 

General  Supply  Store, 

j 

j Fuel  on  hand, I 

555,804  81 
223,321  70 

i 

1 i 

$779,126  51 

Bad  and  Doubtful  Debts. 


Sundry  Agents  and  others, 

$8,652  81 
21,929  66 
1,161  10 
9,399  88 
2,266  58 
22,326  60 

$65,736  63 

•lohn  R .Johnston, 

Chemung  Railroad  Co., 

Chemung  Railroad  Co.,  deferred  

Suflern’s  Station,  1852, 

New  York  Station,  C.  S.  Tanpen, 

SCHEDULE  (G.) — Increase  of  Liabilities  from  Sept.  30, 1852  to  June  30,  1854. 


35 


36 


SCHEDULE  (H.) 

Stock,  Funded  Debt,  and  Bills  Payable, 
September  30,  1854. 


stock, 810,023,958  84 

Funded  Debt, 22,601,000  00 

Bills  Payable,  as  below,  2,225,046  06 


834,850,004  90 


^Maturity  of  Bills 
Pg^yable. 

Secured  by 
Moi-tgage  to 

C.  Vandrrbilt. 

Secured  by 
Mortgage  to 

D.  Drew. 

i 

Not  secured  by 
Mortgage. 

Total. 

i October,  1854. 

1 November,  ‘‘ 
j December,  “ 
j .Taiiuary,  1855, 
j February,  “ 

! March,  “• 

1 April,  “ 

1 May,  ’ “ 

1 .Tunc,  “ 

1 August,  “ 

j February,  1860 

1 

858.333  32 

133.333  30 
74,999  99 

133,333  39 

855,825  00 
63,153  44 
199,319  78 
120,031  83 
8,557  99 
63,574  05 
14,733  40 
4,457  11 
14,497  96 
13,759  69 

8524,211  07 
342,084  86 
126,061  29 
130,943  10 
58,336  00 
21,189  16 
23,410  33 
900  00 

40,666’  00 

8580,036  07 
405,238  30 
383,714  39 
384,308  23 
141,893  98 
218,096  60 
38.143  73 
5;357  11 
14,497  96 
13,759  69 
40,000  00 

8400,000  00 

8557,910  25 

81,267,135  81 

82,225,046  06 

Of  the  payments  becoming  due  October,  November  and  December,  1854,  the  following  Table 
will  explain  for  what  purposes  the  acceptances  of  the  Treasurer  were  given  : 


OCTO-BKR. 

i November. 

December. 

Locomotives, 

869,904  65 
15,020  00 
47,622  40 
48,236  59 
21,545  54 
1,400  00 
314,475  00 
61,831  89 

832,580  63 
12,625  72 
42,293  80 
23,530  36 

873,898  41 
18,843  84 
49,737  51 

Freiglit  and  Passenger  Cars,.. 
Materials, 

Iron,  

Grading, 

2,119  49 
4,136  26 
219,720  78 
10,896  05 
4,362  00 

Sundries, 

*Cash, 

263,175  00 
14,592  68 
14,381  78 
2,058  33 

Paymasters, 

Fuel, 

Propellers, 

8580,036  07 

8405,238  30 

8383,714  34 

I’hese  amounts  were  obtained  of  Banks  and  Brokers,  in  cash,  for  which  acceptances  were 
given,  the  money  being  required  to  meet  obligations  of  the  Company  as  they  matured. 


SCHEDULE  (1.) 

Comparative  Statement  of  Earnings  between  the  Years  ending  Sept.  30,  1853,  and  Sept.  30,  1854. 


37 


Increased 
per  centage. 

7.92-100  pr.  ct. 

33.4-5  “ 

5.35-100  ‘‘ 

16 

0 

0 

24.48-100  pr.c. 

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SCHEDULE  (K.) — Kate  per  cent  of  Increase  in  Passenger  and  Freight  Earnings,  and 

Expenditures  from  1852  to  1854. 


40 


APPENDIX  IL 


APPENDIX  II. 


REPORT  FROM  THE  GENERAL  SUPERINTENDENT 
CONCERNING  CONSTRUCTION. 


J.  C.  Bancroft  Davis,  Esq., 
Secretary  of  Investigating  Committee. 


New  York,  October  9,  1854. 


Sir  : — In  compliance  with  your  request,  I inclose  herewith  a statement 
giving  the  details  of  work  charged  to  Construction  since  May  last,  so  far  as 
the  accounts  have  been  made  up. 

In  answer  to  your  question  as  to  what  work  was  done  generally  from 
September,  1852,  to  May,  1854,  I would  state  that  the  Report  of  the  Direc- 
tors, submitted  in  November  last,  furnishes  an  answer  to  the  question  up  to 
September  30,  1853,  and  I beg  leave  to  refer  to  it  for  particulars. 

From  that  time  until  May,  when  I assumed  charge  of  the  work,  the  ac- 
counts were  very  voluminous,  and  not  kept  in  such  a manner  as  to  enable 
me  to  furnish  the  details  in  time  for  your  purposes.  The  work  was  similar 
in  character  to  that  done  since  then,  and  the  statement  furnished  will  give  a 
very  fair  idea  of  the  general  character  of  our  Construction  Account. 

Respectfully, 

Your  obedient  Servant, 

D.  C.  McC ALBUM, 
GenH  SupH. 


STATEMENT  OF  WORK  DONE  AND  CHARGED  TO  CONSTRUC- 
TION/' IN  THE  MONTHS  OF  MAY,  JUNE,  JULY  AND  AUGUST. 


UNION  RAILROAD. 


Building  Double  Track  between  Paterson  and  Bergen, ^55,731  30 

“ Cattle  platform  at  Bergen, 61  75 

“ Machine  Shops  ‘‘  “ 1,699  32 

“ Telegraph  Office  “ Boiling  Spring, 24  00 

“ Retaining  Wall  “ Van  Winkle’s  Farm, 212  75 

“ Hackensack  Bridge, 1,899  30 


$59,628  42 


44 


NEWBURGH  BRANCH. 

Grading  Depot  grounds  and  laying  side  tracks  at  Newburgh, S‘^,435  40 


EASTERN  DIVISION. 

Grading  Depot  grounds  at  Shultz  for  wood  yard  and 

laying  side  track, ^*222  62 

Building  new  fences,  rendered  necessary  by  the  ope- 
rations of  contractors  and  others,  in  building  se- 
cond track,  viz. : 

1400  feet  between  Oxford  and  SufFern, ^^141  25 

162  rods  “ SufFern  and  Ramapo, 447  72 

248  “ “ Otisville  and  Port  Jervis, 383  59 

105  “ “ One  mile  east  of  Neversink  Bridge,  213  69 

80  “ SufFern  and  Ramapo, 324  29 

1,510  54 

Filling  Depot  grounds  at  Middletown, 184  48 

Building  Road  Crossing  at  Middletown, 57  77 

“ Platform  at  SufFern  Station, 28  95 

“ “ Newburgh  Junction, Ill  32 

“ Second  Track  between  Otisville  and  Port  Jervis, 28,064  55 

Estimate  of  Wells  & Co.,  on  account  of  Second  Track  between 

Otisville  and  Port  Jervis, 41,545  54 

Estimate  of  King  & Co.,  for  work  on  Neversink  Bridge, 819  23 

“ “ “ I Delaware  “ 2,124  00 

Work  done  by  Bridge  Department,  viz. : at 

Wild  Cat,  S34  98  : Wallkill,  $S  11  : New  Hampton,  $42  50  : 

Davies  Creek,  $o0  44 : Turners,  ^352  08 : Augusta, 

$614  57:  Neversink,  $318  67, 1,416  35 


$76,085  35 


DELAWARE  DIVISION. 

NEW  DITCHES. 

Between  Turnout  and  Rosa  Switch, $352  25 

“ Mast  Hope  and  Delaware  Bridge, 290  73 

“ Hankins  and  Basket, 373  46 

On  miles  85,  91,  92  and  93, 841  14 

East  of  Holbert’s  Bridge, 289  70 

Two  miles  east  of  Cochecton, 170  63 

At  Callicoon  Station, 390  53 

Between  Hancock  and  Deposit, 45  56 

“ Hankins  and  Callicoon, 332  12 

On  miles  166,  177  and  178, 898  82 

Two  miles  west  of  Basket  Switch, 635  19 

Half-Mile  “ Lordville, 307  69 

On  mile  155, 631  13 

5^5,558  95 

SWITCHES  AND  TURNOUTS. 

At  Port  Jervis  for  Car  House  and  Yard, $2,249  69 

Connection  with  Coal  Basin, 2,213  44 

At  Narrowsburgh, 1,281  14 


Carried  forward, 


$5,744  27  $6,558  95 


45 


Brought  forward, $5,744  27  $5,558  95 

At  Stockport, 1,059  13 

“ Basket, 4,771  67 

“ Matamoras  Bridge, 1,176  22 

“ Callicoon, 2,555  13 

“ Hankins, 302  53 

“ Nobodys, 1,953  96 

“ Lordville, 674  41 

“ Deposit, 731  13 

" Rosa, 502  34 

19,470  79 

Removing  slide  at  King  & Fuller’s  Cut, $3,320  86 

“ “ half  mile  west  of  Cochecton,  4,647  73 

Ditching  and  sloping  embankment  between  Port  Jervis 

and  Rosa, 687  29 

Ditching  and  sloping  embankment  east  of  Summit, ...  1,199  99 

9,855  87 

Ballasting,  surfacing  and  laying  second  track  between  Deposit  and 

Susquehunna, 38,663  50 

Cattle  Guards  between  Deposit  and  Susquehanna, 402  50 

LAYING  ADDITIONAL  TIES. 

Between  Sands  Creek  Bridge  and  Hancock, 232  40 

“ Hancock  and  Deposit, 1,105  41 

“ Narrowsburgh  and  Lackawaxen, 1,565  66 

“ Hale’s  Eddy  and  Hancock, 1,126  62 

4,030  09 

FENCING. 

Between  Mast  Hope  and  Lackawaxen, 17  83 

“ Hancock  and  Stockport, 72  34 

“ “ “ Deposit, 107  66 

“ Narrowsburgh  and  Nobodys, 66  15 

On  miles  162  and  163, 78  00 

341,98 

Building  Machine  and  Work  Shop  at  Port  Jervis, 1,476  94 

Extension  of  Passenger  Depot  at  “ 77  23 

Building  Turntable  at  “ 201  99 

Coffer  Dam  at  Matamoras  Bridge, 703  79 

Water  Station  at  Middaugh’s, 284  70 

Office  expenses,  $180  00  : Contingencies,  $9  55, 189  55 

Repairing  Gravel  Cars  for  Construction,  $1,444  27  : Tools  for 

Construction,  $223  25, 1,667  52 

Building  boarding  houses  for  laborers, 574  91 

Turntable  at  Port  Jervis,  (by  Bridge  Department), 234  11 

Delaware  Bridge,  “ “ 2,126  24 


$85,860  66 


SUSQUEHANNA  DIVISION. 

BRIDGES. 

New  Road  Bridge  at  Kirkwood, $4,691  90 

“ “ “ ‘‘  Windsor, 334  00 

“ •'  “ “ Great  Bend, 49  50  ^ 


Carried  forward, 


$5,075  40 


46 


Brought  forward, S5,075  40 

New  Road  Bridge  at  Binghamton, 467  02 

“ “ “ ‘‘  Owego  Creek, 261  80 

Elmira  Island  Bridge, 1,870  24 

Dickinson  Road  Bridge, 1,874  57 

Corning  Bridge, 275  17 

Grading  approaches  to  various  Railroad  Bridges, 475  50 

10,299  70 

SWITCHES. 

Alteration  of  Switches  at  Kirkwood, S120  50 

Extension  “ “ “ Owego, 121  06 

“ “ “ Addison, 206  46  ' 

Cross  Switch  at  Campville, 90  50 

“ “ “ Waverley, 191  95 

Switches  “ Susquehanna, 4,874  43 

Laying  Track  to  Payne  & Olcott’s  Car  Shop, 1575 


Building  Cattle  Guards,  and  Planking  various  crossings  on 

Second  Track, 163  66 

Office  Furniture  and  Clerk  hire, 333  43 

Engineering  Services  and  Expenses, 134  66 

Susquehanna  Machine  and  Workshops, ^611  34 

Owego  ‘‘  ‘‘  ‘‘  1,066  14  1,677  48 


Susquehanna  Freight  and  Passenger  Stations, 1,512  61 

“ Hide  House, 254  67 

Owego,  “ 319  29 

Corning  Freight  and  Passenger  Station, 898  06 

Owego  New  Platforms, 14  00 

2,998  63 

WATER  STATIONS. 

Water  Station  at  Union, SI 02  72 

“ “ “ Campville, 233  83 

“ “ “ Susquehanna, 50  51 

“ “ “ Kirkwood,  369  42 

“ “ “ Campville, 68  13 

824  61 

Fitting  Gas  Lamps  at  Elmira,  33  41 

Contingencies, 22  38 

Culvert  at  Corning, S105  34 

“ “ Elmira,  202  83 

308  17 

New  Fences, 318  26 

Side-walk,  Owego, 375  81 

Widening  Embankments, 2,422  63 

Work  done  by  Bridge  Department,  viz.  : 

Highway  Bridge,  S27  75;  Binghamton,  S86  44;  Pipe  Creek, 

S223  13 ; Elmira,  S766  55 ; Kirkwood,  S131  19 ; Wind- 
sor, S30  13;  Elmira  Island,  S672  36;  Corning,  S47  63; 
Watchmen’s  Services,  S65  37, 2,032  22 


S27,565  70 


WESTERN  DIVISION. 

Widening  Cuts  betw'een  Alfred  and  Hornellsville, S4:,624  14 

“ “ at  Maple  Hill, 1,566  37 

Carried  forward, S6,190  51 


47 


Brought  Forward, S6,190  51 

Grading  and  Docking  Water  street,  Dunkirk, 2,199  26 

Grading  and  Laying  Switch  to  Cattle  Pen  at  Dunkirk, 446  37 

Building  Cattle  Pen  at  Dunkirk, 531  22 

Painting  and  Finishing  new  Warehouse  at  Dunkirk, 241  10 

Ditching  at  Maple  Hill, S522  25 

“ between  Almond  and  Hornellsville,  214  87 

737  12 

Erecting  various  temporary  Water  Tanks,  rendered  necessary  by 

the  drouth, 1,129  72 

Fighting  Fire  to  protect  Building  Materials,  &c., 166  00 

Laying  new  Side  Track  at  Scio, 1,773  92 

Building  Office,  &c.,  for  General  Car  Repairer, 68  99 

“ Dining  Saloons  at  Hornellsville  and  Dunkirk, 299  35 

Fencing  Andover  Depot  grounds, 30  60 

Engineering, 43  67 


S13,857  83 


RECAPITULATION. 


Union  Railroad 

Newburgh  Branch, 

Eastern  Division,  

Delaware  “ 

Susquehanna  “ 

Western,  “ 

Locomotives,  

Iron,  

Cars— Freight,  $90,208  20  ; Passenger,  $6,941  15 
Machinery, 


$59,628  42 
2,435  40 
76,085  35 
85,860  66 
27,565  70 
13,857  83 
263,864  43 
170,929  68 
97,149  35 
2,829  96 


Total, 


$800,206  78 


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